Question 1mega industries corporation has eighteen years of

Assignment Help Finance Basics

Reference no: EM13347679

Question 1. Mega Industries Corporation has eighteen years of a bond outstanding to maturity, an 8.25% nominal coupon, with semiannual payments. The bond has a 6.5% nominal yield to maturity, and can be called at a price of $1,120.

a. What is the bond's nominal yield to maturity when called?

b. What is the bond's effective yield? If inflation rate is at 2.95% what is the real rate of return?

Question 2. Copper Corporation's Class Semi bonds have a 12 year maturity and an 8.75% coupon paid semiannually and those bonds sell at their par value. The firm's Class A bonds have the same risk, maturity, nominal interest rate, and par value but these bonds pay interest annually. Neither bond is callable.

a. At what price should the bond sell for?

b. Does this bond sell at a discount or premium and why?

Question 3. Flagship Corp. is looking to raise capital by issuing some 26 year bonds. The yield on the bonds is 7.34 percent. The bonds sell 96.75 percent of par value.

a. What is the current yield on these bonds?

b. What is the effective yield on these bonds?

c. What is the yield to maturity? What type of bond is this, discount or premium?

Reference no: EM13347679

Questions Cloud

Te following questions are focused on a specific lender : the following questions are focused on a specific lender borrower relationshiphowever each question is independent so

Question 1nbsp assume you have the following personal loans : question 1nbsp assume you have the following personal loans outstanding and have allocated 675 per month as your

Write a bashbin program to perform a search of an employee : write a bashbin program to perform a search of an employee list. the file emplist has the format given in the table

1for each of the subsequent pairs of investments a through : 1.for each of the subsequent pairs of investments a through e identify which has the lowest risk by placing an x to the

Question 1mega industries corporation has eighteen years of : question 1.mega industries corporation has eighteen years of a bond outstanding to maturity an 8.25 nominal coupon with

Investment management assignmentprepare a report : investment management assignmentprepare a report recommending the appropriate investment of aud3 million for a five

Question 1a whatnbsp was the neolithic revolutionnbsp : question 1a. whatnbsp was the neolithic revolution?nbsp describe carefully what basic changes caused this revolution

Problem 1 solve the following functions for x where x is a : problem 1. solve the following functions for x where x is a real number. leave your answers in exact form that is do

You have to design a syntactic analyzer for the language : you have to design a syntactic analyzer for the language specified by the grammar below. we are using the following

User Account

All Pages